LLQP Life Insurance · Component 2.2 · 30% of the exam
A client who is the sole earner asks which rider would most directly protect the policy if he could not work for two years after an accident. The answer is:
- AA term rider, which adds coverage at low cost so the family is protected if the accident proves fatal
- BGuaranteed insurability, which lets him buy more coverage once he returns to work after the accident
- Waiver of premium, which keeps premiums paid during total disability after the waiting period
- DAccidental death, which pays an additional benefit if the injuries from the accident later cause his death
Correct answer: C) Waiver of premium, which keeps premiums paid during total disability after the waiting period
Two years without income threatens the premium. Waiver of premium removes that threat. Accidental death pays only if he dies; GIB and term riders add coverage rather than protecting it.
Why the other options are wrong
- AA term rider adds coverage.
- BGIB adds coverage; it does not keep premiums paid.
- DAD pays at death, not during disability.
Exam tip
'Cannot work' → waiver of premium. 'More coverage later' → GIB. 'Accident death' → AD.
Common mistake
Confusing what each rider protects: the policy versus the beneficiary.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.